Amidst the Paris Climate Agreement, Spanish gas and oil company becomes the first oil firm, Repsol, to announce its pledge to become carbon neutral by the end of 2050, the company said on Monday. However, it seems like the pledge is non-binding.
In a statement, the company has outlined several ways on how they plan to achieve this goal by 2050. According to Repsol, they will be shifting the focus of its upstream operations to value and cash generation rather than volume, as well as by integrating alternative energy sources into its refining operations.
Repsol added that it would increase its production of low-carbon biofuels and chemical products, and they would further invest in alternative energy generation technology and carbon capture initiatives. The company said that it aims to “become a leading international player in renewable energies.”
According to the company, at least 70% of its carbon footprints can be addressed by existing technologies and strategies. The remaining 30% will then be hopefully addressed by its commitment to invest in newer technologies like carbon capture.
The company said it would take a post-tax impairment charge hit of €4.8 billion, or about $5.3 billion, as it re-values some of its oil and gas-related assets under a Paris Agreement-compliant scenario. The statement further suggests that this initiative will not impact the company’s cash flow or stakeholder remuneration.
“We are convinced that we must set more ambitious objectives to fight climate change,” Repsol CEO Josu Jon Imaz said in a statement. “Addressing the significant challenges that lie ahead with strategic clarity is what will allow us to turn them into opportunities. We are convinced that this strengthens our project that is sustainable, attractive, and profitable for all our stakeholders.”
